September 29, 2014 — To help fight corruption and fraud in the securities market, the U.S. Congress initiated a whistleblower program as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The program authorizes awards for informants who alert the Securities and Exchange Commission (SEC) to credible, specific and timely information concerning an imminent or ongoing fraudulent scheme. Insiders who work in a company’s compliance, internal audit or legal department frequently are privy to such information. Whistleblowers could receive from ten to thirty percent of the amount the government recovers, provided the amount exceeds $1 million.
Audit And Compliance Professional Notified SEC Months After Employer Refused To Take Action To End Wrongdoing
A whistleblower who notified the SEC about an employer’s SEC violations has received an award in excess of $300,000. The anonymous employee worked in the company’s audit and compliance department. This is the first SEC award paid to a tipster who was employed in an audit or compliance role.
The company insider initially informed internal personnel, including a supervisor, about the violations. After four months, when nothing happened to redress the wrongdoing, the whistleblower decided to collaborate with the SEC. The employee’s information led directly to the successful resolution of an SEC enforcement action.
Whistleblowers Notify SEC of Violations
While Waters & Kraus was not working with the whistleblower on this SEC matter, we are representing tipsters in similar instances of SEC fraud. If you have comparable claims against a your employer or anyone else engaged in securities fraud, contact us by email or call our qui tam attorneys at 855.784.0268 to learn more about our practice and how we can work together to notify the government about fraud and abuse. Our qui tam lawyers, George Tankard and Anne Izzo in our Maryland office, are committed to advancing and protecting informants’ interests in whistleblower lawsuits.